\n\tRIYADH: Moody\u2019s Ratings affirmed the UAE\u2019s Aa2 long-term sovereign ratings with a stable outlook, citing the country\u2019s financial buffers, low federal\u00a0debt\u00a0and diversified economy despite disruption to trade through the Strait of Hormuz.\u00a0<\/p>\n
\n\tThe agency also\u00a0maintained\u00a0the UAE\u2019s foreign-currency senior unsecured debt rating at Aa2 and its medium-term note program rating at Aa2. Its local- and foreign-currency country ceilings\u00a0remain\u00a0at\u00a0Aaa.\u00a0<\/p>\n
\n\tThe latest assessment comes as Gulf economies navigate heightened geopolitical uncertainty stemming from disruptions to shipping routes and energy markets. Credit rating agencies have increasingly focused on the region\u2019s fiscal strength, sovereign wealth buffers and progress in economic diversification when evaluating countries\u2019\u00a0ability to withstand external shocks.\u00a0<\/p>\n
\n\tMoody\u2019s said the UAE\u2019s high per-capita income, effective\u00a0policymaking\u00a0and progress in developing non-hydrocarbon industries strengthen its capacity to absorb economic shocks. \u00a0\u00a0<\/p>\n
\n\tHowever, Moody\u2019s expects\u00a0hydrocarbon production to decline\u00a0as a result of\u00a0the disruption.\u00a0\u00a0<\/p>\n
\n\t\u201cWe expect real GDP (gross domestic product) to contract by around 7 percent in 2026, driven by a decline in hydrocarbon production by 23 percent and a contraction in the non-hydrocarbon sector by 4 percent, driven by disruption to trade and confidence-sensitive sectors,\u201d Moody\u2019s report stated.\u00a0<\/p>\n
\n\tAcross the Gulf, Moody\u2019s latest sovereign actions point to sharply\u00a0different levels\u00a0of resilience. \u00a0\u00a0<\/p>\n
\n\tQatar\u00a0retained\u00a0an Aa2 rating with a stable outlook, matching the UAE, while Saudi Arabia was affirmed at Aa3 with a stable outlook, supported partly by its ability to route oil through the East-West pipeline and Red Sea terminals.\u00a0<\/p>\n
\n\tKuwait kept its A1 stable rating while Bahrain\u2019s weaker B2 rating carries a negative outlook as the regional conflict compounds its fiscal pressures.\u00a0<\/p>\n
\n\tThe assessment also assumes that Abu Dhabi would provide full financial support to the federal government if\u00a0required.\u00a0<\/p>\n
\n\tAbu Dhabi\u2019s government financial assets exceeded 300 percent of the emirate\u2019s GDP at the end of 2025, according to the agency. The UAE can also bypass the Strait of Hormuz for some oil exports through the\u00a0Habshan-Fujairah pipeline.\u00a0<\/p>\n
\n\tTourism,\u00a0real estate,\u00a0logistics,\u00a0transport\u00a0and foreign investment are expected to face pressure from weaker confidence and interrupted connectivity.\u00a0<\/p>\n
\n\tHigher oil prices, forecast to average between $90 and $110 a barrel in 2026, are expected to partly offset lower export volumes. Moody\u2019s projects economic growth will rebound to 13 percent in 2027 as trade flows resume and non-hydrocarbon activity recovers.\u00a0<\/p>\n
\n\tThe federal government recorded an estimated budget surplus equivalent to 0.8 percent of GDP in 2025, while federal debt is expected to remain at about 3 percent to 4 percent of GDP.\u00a0<\/p>\n
\n\tMoody\u2019s said an escalation damaging strategic infrastructure could place downward pressure on the rating.\u00a0Improved transparency,\u00a0reduced geopolitical risks and greater resilience to the global energy transition could support an upgrade.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"RIYADH: Moody\u2019s Ratings affirmed the UAE\u2019s Aa2 long-term sovereign ratings with a stable outlook, citing the country\u2019s financial…\n","protected":false},"author":2,"featured_media":736165,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-736164","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/736164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=736164"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/736164\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/736165"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=736164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=736164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=736164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}